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Market Environment (Intermediaries (Play a role in bridging the gap…
Market Environment
Intermediaries
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Also include bankers, asset managers, and insurance brokers
Include wholesalers and retailers, agents and brokers, representatives and spaza shops
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New trends among intermediaries provide business managers with opportunities and threats that must be investigated and addressed
The nature and intensity of competition in a particular industry are determined by the following five factors
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Competitors
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Competition is a situation in the market environment in which several businesses, offering more or less the kind of product or service, compete for the patronage of the same consumers
Compete for market share and for productive resources such as labour , capital and materials.
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Competition keeps excessive profits in check, stimulates higher productivity and encourages technological innovation.
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It is therefore an important task for management to find a position in the market where the business can successfully defend itself against the forces of competition
The weaker the five forces are, the better the chances are for survival and good performance